A new report from Global X has shown 2025 is shaping up to be a record year for ASX ETF investments.
According to the ETF Market Scoop report, the Australian ETF market is off to a record-breaking start in 2025, with YTD net flows reaching $27.2 billion, an 89% increase compared to the same period last year.
Additionally, July 2025 marked a historic milestone for the ETF industry, setting a new record for monthly inflows with over $5.9 billion in net flows, surpassing the previous high of $4.8 billion set in January this year.
The Australian ETF market has grown 34.1% over the past year, and is running at a five-year compound annual growth rate (CAGR) of 34.0% p.a.
ETF short term winners
The Global X report also identified best performers during July.
Ethereum was the best-performing ETF category in July 2025, rising over 57% for the month. The rally was supported by renewed investor confidence following the passage of the GENIUS Act in the US, which provided long-awaited regulatory clarity around stablecoins and digital asset infrastructure.
Broad-based global share ETFs were the clear standout by a wide margin, attracting around $885 million in net flows.
The report also highlighted the funds with the best year to date returns as at July 31. These included:
- Global X Defence Tech ETF (ASX: DTEC) lifted 58.2%
- Vaneck Global Defence ETF (ASX: DFND) rose 54%
- BetaShares Global Gold Miners ETF – Currency Hedged (ASX: MNRS) grew 50.1%
Unsurprisingly, gold and defence focussed funds led the way.
Investors poured into these sectors this calendar year amidst global conflict and commodity price surges.
ETF short term losers
According to the report, in July, the Australian resources sector ETFs experienced notable outflows, recording $52 million in net outflows, marking the fourth-worst month historically for the category.
Financials also faced pressure, seeing $22 million in net outflows.
These trends may reflect investor caution ahead of the upcoming Australian reporting season, coupled with ongoing uncertainty around the materials sector's recovery prospects. Additionally, Australian banks trading at a premium valuation may have contributed to the cautious sentiment, prompting some investors to reduce exposure in the sector amid a broader backdrop of market volatility and macroeconomic concerns.
Yearly winners and losers
Zooming out a little further, the report also identified the funds that rose and fell the most over the past 12 months to July 31.
These included:
- Betashares Video Games and Esports ETF (ASX: GAME) rose 80.7%
- Vaneck Bitcoin Etf (ASX: VBTC) gained 80.1%
The funds that fell the most over the past 12 months to July 31 included:
